Economics 9708 · AS & A Level · Income elasticity of demand

Income elasticity of demand — practice question

A concert arena has a fixed capacity, so it can sell 10 000 tickets for a concert. The present equilibrium ticket price is $10. The arena owners choose to impose a minimum ticket price. Under which conditions will the number of unsold tickets be greatest?

  • A11; inelastic
  • B11; elastic
  • C12; inelastic
  • D12; elastic

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